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  • #1

    Help needed for a friend of my mothers

    Hi all
    Need a bit of advice to pass on

    My Mum's friend has a daughter of about 40 who had a serious stroke last year. She was running a good business however she now has a lot of debt both personal and business related.
    From what i understand she has only just made a claim for DLA.
    The girls mother is reasonably wealthy and could pay off all the personal debts but I am not sure if that is right.

    I have suggested that they get in touch with CAB and make sure all possible benefits are claimed, write to the personal creditors and offer £1 a month for now with freeze of interest and charges quoting OFT guidelines (forbearance and all that).

    Now some questions, if the mother buys a property as an investment would the daughter be able to claim HB or would they need to set up a legal framework and would social services be prepared to do the necessary work to alter the house.

    At this point BR is looking like the best option although there is a part of the business that could easily be carried on (although not by the daughter so I guess the OR would try to sell it). The other daughter is qualified and capable of running it.
    Hope that all makes sense

    Any advice would be gratefully received although cos I am a coward and haven't told my mum about my debts it all gets complicated but I'm buggered if I am gonna suggest they look to see if the debts are on her CRA file
    Tags: accounts, advice, assets, benefits, cab, charges, claim, cra, creditors, debt, debts, financial, freeze, guidelines, help, housing, interest, investment, legal, list, oft, pay, personal, property, questions, services, social, tax, tax return, trader, unlawful
  • #2
    Re: Help needed for a friend of my mothers

    Originally posted by jon1965 View Post
    Hi all
    Need a bit of advice to pass on

    My Mum's friend has a daughter of about 40 who had a serious stroke last year. She was running a good business however she now has a lot of debt both personal and business related.
    From what i understand she has only just made a claim for DLA.
    The girls mother is reasonably wealthy and could pay off all the personal debts but I am not sure if that is right.

    I have suggested that they get in touch with CAB and make sure all possible benefits are claimed, write to the personal creditors and offer £1 a month for now with freeze of interest and charges quoting OFT guidelines (forbearance and all that).

    Now some questions, if the mother buys a property as an investment would the daughter be able to claim HB or would they need to set up a legal framework and would social services be prepared to do the necessary work to alter the house.

    At this point BR is looking like the best option although there is a part of the business that could easily be carried on (although not by the daughter so I guess the OR would try to sell it). The other daughter is qualified and capable of running it.
    Hope that all makes sense

    Any advice would be gratefully received although cos I am a coward and haven't told my mum about my debts it all gets complicated but I'm buggered if I am gonna suggest they look to see if the debts are on her CRA file
    So sorry to hear about the stroke.....

    Before you go any further, I think you need to list the debts that she has on here with dates, how much allegedly owing and so on. I certainly wouldn't be in a rush to pay any off; some may be UE and some may include unlawful charges and so on.

    If the lady owns no assets, then BR may be the best way to go but if it means losing a valuable business, then it sounds a no-no.

    Checking credit files is a waste of time and effort, IMO.....
    Remember the mantra:
    NEVER communicate by 'phone.
    Send EVERYTHING by Recorded/Special Delivery
    Keep a copy of EVERYTHING sent
    Keep hold of EVERYTHING received
    PriorityOne & CPUTR 2008 (ex P1 CAG CPUTR 2008)

    I'm an official AAD Moderator and also a volunteer, here to help make the forum run smoothly. Any views or opinions are mine and not the official line of AAD. Similarly, any advice I have offered you is done so on an informal basis, without prejudice or liability. If in doubt seek advice from a qualified insured professional - Find a Solicitor or go to the National Probono Centre.

    If you spot an abusive or libellous post then please report it by Clicking Here. If you need to contact me, for instance if I've issued you a warning, moved, edited or deleted your post, please send me a message by clicking my username.

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    • #3
      Re: Help needed for a friend of my mothers

      Thanks P1 , I am in no position to know any of the details apart from what I have posted. It is only part of the business that has any chance of going on and I believe the sister would be able to buy it now or from the OR .
      The mother is I think going to get some professional advice from her Financial advisor and possibly solicitor but I said i would try to find out some options.
      It seems pointless to me starting on the UE route if BR is going to be needed which is why I suggested token payments for now.
      From what i understand she is in the worst possible postion, can not talk walk etc but mind is still sharp

      Comment

      • #4
        Re: Help needed for a friend of my mothers

        Can i ask, this business, is the daughter self employed, sole trader, or a ltd company?

        Reason i ask is, if the business debts are in her name, then it would be treated like any other personal debt providing she is self employed, or rather, a sole trader.


        Wouldnt mean that the business is taken by the OR and sold on, it would just mean that the debts in her name would be included in the BR
        I'm an official AAD Moderator and also a volunteer, here to help make the forum run smoothly. Any views or opinions are mine and not the official line of AAD. Similarly, any advice I have offered you is done so on an informal basis, without prejudice or liability. If in doubt seek advice from a qualified insured professional - Find a Solicitor or go to the National Probono Centre.

        If you spot an abusive or libellous post then please report it by Clicking Here. If you need to contact me, for instance if I've issued you a warning, moved, edited or deleted your post, please send me a message by clicking my username.

        Comment

        • #5
          Re: Help needed for a friend of my mothers

          Thanks SX. So if she is self employed or a sole trader then someone else could quite easily take over the bits of the business that work and all the debts would be included in the BR. Of course if it was a limited company then the company could be liquidated and the personal debts re evaluated i.e UE etc?

          Comment

          • #6
            Re: Help needed for a friend of my mothers

            Just spoken to mum and she suspects it maybe a limited company but isn't sure

            Comment

            • #7
              Re: Help needed for a friend of my mothers

              Ltd company is slightly different, because the liability remains within the company, and that means liquidators etc.

              If she is self employed sole trader, or self employed partnership, then debts will remain her liability if they are in her name, and can be treated as personal debts in regards to the OR.

              If that is the case, its as simple as getting an accountant to write up some cessation accounts, file a tax return, and then whoever wanted to take the business over, would just file their own accounts in the future.

              I would advise she speaks to her accountant to get the full facts, as im only speculating her situation at the moment.
              I'm an official AAD Moderator and also a volunteer, here to help make the forum run smoothly. Any views or opinions are mine and not the official line of AAD. Similarly, any advice I have offered you is done so on an informal basis, without prejudice or liability. If in doubt seek advice from a qualified insured professional - Find a Solicitor or go to the National Probono Centre.

              If you spot an abusive or libellous post then please report it by Clicking Here. If you need to contact me, for instance if I've issued you a warning, moved, edited or deleted your post, please send me a message by clicking my username.

              Comment

              • #8
                Re: Help needed for a friend of my mothers

                Thanks SX I will pass it on

                Comment

                • #9
                  Re: Help needed for a friend of my mothers

                  Has anyone got any thoughts on the Housing Benefit situation

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